Fed April minutes show division about when to exit (by Greg Robb)

WASHINGTON (MarketWatch) -- Federal Reserve officials are divided about the timing of when to start to tighten monetary policy, with some officials saying that an exit might come sooner than expected while others were concerned early rate hikes would unnecessarily damp the recovery, according to the minutes of the Fed's April 26-27 meeting released on Wednesday. Some Fed officials told their colleagues that they would only support a third round of asset purchases, known as QE3, if there was a significant change in the economic outlook. The minutes reveal that Fed officials spent a lot of time discussing how to exit from an ultra-low stance with rates stuck between 0% and 0.25% and the Fed's having more than $2.7 trillion in assets on the books. Fed officials said the discussion was not a sign that an exit would necessarily begin soon. While there were no decisions taken, most of the FOMC members wanted to shrink the balance sheet though predictable sales of assets.